Despite being on most of the Govt medical schemes & subsidies, many Singaporeans still find themselves confused. What is the purpose and the differences between Medisave & Medishield & Medifund?
Medisave (The Saving Account)
As the name suggests, Medisave is a national saving scheme introduced in April 1984. It is 1 of the 3 CPF accounts (Ordinary, Special, Medisave) whereby your monthly CPF contribution is made to. The intention of this is to help individuals set aside part of their income to meet their future personal or immediate family’s hospitalization, day surgery and certain outpatient expenses. For someone aged below 35, the income contribution going into the Medisave account is ~7%.
Medisave contribution is compulsory if you are:
- a self-employed person; and
- a Singapore citizen or Singapore permanent resident;
- earning a yearly net trade income# of more than $6,000.
Medishield (The Insurance)
Medishield on the other hand, is an opt-out low cost basic medical insurance scheme. The purpose of the Medishield is to shield Singaporeans against large hospital bills which cannot be covered for by the Medisave balances. Premiums for this basic insurance is payable through the Medisave account (up to a limit). Currently, the coverage extends to Class B2/C hospitalisation bills and Co-payment is required- this means that the insured will have to co-pay part of the medical bill. The coverage is also ‘Sub-limit’ and this means that there is a limit to the amount claimable for each hospitalisation category. For hospital stays in higher wards or private hospitals, coverage will be pro-rated.
Q: So what are the Integrated Shield Plans & Upgrade that I hear about?
Medishield provides basic coverage, Singaporeans seeking more comprehensive coverage would enhance their health coverage via Medisave-approved Integrated Shield plans. These plan retain the benefits and coverage of the basic MediShield tier, while enjoying enhanced coverage provided by their private insurers.
Premiums are likewise, paid by Medisave. For individuals who do not wish to pay for any co-payment, an additional rider can be taken up along with the upgrade to cover for it. Cash premium is applicable for such riders.
Q: So who do I claim from in the event of hospitalisation? My private insurer or Medishield?
Upon upgrade, premiums are paid directly to the private insurers who will service all of your needs. The private insurers will service all claims and sort out all back-end arrangements with CPF Board to include any payouts from MediShield. You can also seek to claim from your employees benefits, if required.
MediFund (The safety net)
Medifund is an endowment fund set by the Government in 1993 to act as a safety net to assist needy Singaporeans who are unable to afford their medical care. The interest earned on this fund is given out to hospitals as grants to help needy Singaporeans pay for the medical bills which they cannot afford.
CFP, representing Financial Alliance 